A lawsuit was filed in Pennsylvania accusing DraftKings and FanDuel of using NFL and Genius Sports‘ data to create sportsbook platforms that “may end up fueling addiction.” The Public Health Advocacy Institute (PHAI) has filed this lawsuit on behalf of Christopher Sage and Terry Thompson, who both allegedly developed gambling addictions after engaging with the gambling apps. A key focus is the lawsuit is live, in-game micro betting, which it says essentially converts sportsbooks into highly addictive products.
The operators are accused of “weaponizing mobile technology and AI” to drive uninterrupted betting, the lawsuit states. Micro betting offers the possibility to wager on practically every game event, so it significantly reduces the usual limitations of time, place, and pace.
Plaintiffs note:
Every half, quarter, minute, second, pitch, play, shot becomes a new gambling opportunity, repeatedly wagered as the game unfolds.
While slower paced games like casual poker usually take quite a while to be played, micro betting without a doubt is similar to slot machines in terms of speed and repetition. The bets are placed within seconds and there are no off-ramps or breaks which means users get trapped into continuous cycles. Plaintiffs argue that a design such as this is deliberately intended to maximize the level of engagement and also the repeated wagering on the very same thing.
In order for micro betting to operate, it requires real-time data and this is being provided by Genius Sports and the NFL who both also benefit financially from micro betting. In 2025, Genius earned $126.1 million from live micro betting during the game which was nearly 19% of its total revenue at least partially because the NFL is one of its shareholders.
Plaintiffs describe how casual betting escalated into addiction after switching to mobile apps, causing financial and personal ruin:
Within just a few years… Plaintiffs nearly lost everything – their money, their houses, their business, their families.
VIP programs were said to be a way to lure consumers into continuing to play by giving them gifts and trips. The legal action cites the law of Pennsylvania and claims: product defect, failure to provide adequate warning, negligence unfair trading practices. Intentionally causing emotional distress.
The plaintiffs are urging the court for money, a new jury trial, and court orders limiting the range of sportsbook products. Micro betting is facing more regulatory scrutiny in the U.S. New Jersey is set to ban microbets while New York is mulling a prohibition on live bets. Massachusetts, Colorado, Kentucky, Louisiana, and Minnesota have the issue on their agendas, while Ohio, Maryland, and Vermont have already made it illegal to place prop bets on college athletes.
PHAI has a history of challenging sportsbooks, including:
- 2023: Class-action in Massachusetts against DraftKings over deposit bonuses
- 2025: Pennsylvania lawsuit targeting Caesars Palace Online Casino and Harrah’s Philadelphia Casino
- 2024: Sued Massachusetts Gaming Commission over player data transparency
